Cost-Plus contracts offer owners flexibility and detailed cost tracking—but with flexibility comes risk. When reimbursement is tied to actual costs, success depends on well-defined terms, strong documentation, and clear limits on what counts (and what doesn’t).

At Elkhoury Law, I help owners, contractors, and construction managers negotiate and manage Cost-Plus agreements that protect your position—whether you're pricing hourly labor or reconciling a multi-phase infrastructure build.

What Is a Cost-Plus Contract?

A Cost-Plus contract reimburses the contractor for actual, allowable project costs plus a negotiated fee. That fee can be:

• A fixed fee;

• A percentage of cost; or

• Or performance-based, depending on the structure.

There are several variations of a cost-plus contract or project model, including:

• Cost-Plus Fixed Fee

• Cost-Plus with Guaranteed Maximum Price (GMP)

• Cost-Plus with Incentive Fee

These agreements are often used for:

• Projects with unknown scopes or fast-track schedules

• Renovations, custom builds, or early-contractor-involvement models

• Owners seeking more visibility into costs and subcontractor pricing

How Elkhoury Law Supports Cost-Plus Projects

Cost-Plus sounds simple—“pay for what it costs,” plus a fee—but the details determine the outcome. I help clients ensure that their contracts sets clear rules on what’s reimbursable, who approves costs, and how disputes are resolved.

Contract Drafting & Negotiation

• Drafting Cost-Plus contracts that clearly define:

  • Allowable vs. unallowable costs

  • Fee structures and shared savings options

  • Documentation and audit rights

  • Owner approval thresholds

  • Risk-shifting language for schedule or design impacts

• Reviewing AIA, ConsensusDocs, or custom agreements to fit project type

Project Oversight & Payment Review

• Advising during performance on pay applications, labor logs, and third-party invoices

• Monitoring contingency usage and change order pricing

• Helping owners avoid “death by timesheet” disputes

• Counseling contractors on compliance with cost substantiation procedures

Dispute Resolution

• Representing parties in disputes involving:

  • Reimbursement of non-allowable costs

  • Fee escalation or payment disputes

  • Cost auditing or recordkeeping issues

  • Accusations of inefficiency, delay, or bad faith billing

• Handling disputes through mediation, arbitration, or litigation

Why Work with Elkhoury Law on Cost-Plus Contracts?

Because in Cost-Plus deals, everything is negotiable—and everything is documentable. I help you draw the line between fair reimbursement and cost creep, and I bring legal clarity to contracts where the scope is evolving and the costs are fluid.

Whether you’re the one writing the checks or sending the invoices, I’ll help you define the rules before problems show up.

Serving Owners and Contractors Across Texas

Elkhoury Law delivers sharp, business-first counsel on Cost-Plus contracts for commercial, public, and private projects. If you’re considering a Cost-Plus structure, let’s make sure it works in your favor.